Dow slid back 32, advancers over decliners better than 3-1 while NAZ dropped 122. The MLP index added 3+ to the 127s & the REIT index gained 2+ to 334 (below earlier highs). Junk bond funds slid lower & Treasuries were purchased, bringing lower yields. Oil was even in a volatile session & gold fell 5 to 1718 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
Pres Tru,p[ said he expects US economic growth to rebound from the coronavirus pandemic in Q4 as the nation faces its first downturn in nearly 6 years. “I think the fourth quarter is going to be really strong, and I think next year is going to be a tremendous year,” Trump said. “That’s what’s building. Third quarter is a transition quarter. Second quarter is what it is.” Trump's comments come one day before the release of Q1 GDP, which is expected to reveal the economy contracted at a 4% annualized rate in Q1, well before a broad swath of the country shut down to mitigate the spread of the virus. It would be the first quarterly contraction since 2014 & the worst since the last recession more than a decade ago. Larry Kudlow, Trump's chief economic adviser, said the administration is aware that "we're in a deep contraction with rising unemployment." More than 26M Americans (16% of the nation) have filed unemployment claims since the virus outbreak forced a broad swath of the US economy to shut down. But Kudlow said the 4 stimulus packages, including the massive $2T bill signed into law at the end of Mar, passed by the federal gov, will help to cushion the economic blow from the mandated stay-at-home orders throughout the nation. "We'll take that hit," he said. "It's very bad, very difficult. We're doing what we can." Still, Kudlow said there's a lot of "pent-up" demand. "I'm optimistic about the future," he added. The Trump administration is not alone in its expectations for a solid economic rebound from the crisis. Earlier in the month, Federal Reserve Chairman Jerome Powell said he thinks there can be a "robust" economic rebound from the pandemic, even as increasingly strict containment measures force American life to come to a grinding halt. “At the Fed, we are doing all we can to help shepherd the economy through this difficult time,” Powell said. “When the spread of the virus is under control, businesses will reopen, and people will come back to work. There is every reason to believe that the economic rebound, when it comes, can be robust.”
As myriad companies slash or suspend their dividends amid the economic chaos sparked by the International Business Machines (IBM), a Dow stock, bumped the quarterly payout up by a penny to $1.63. The new rate, equal to $6.52 a year, represents an annual yield of about 5.2%. IBM, which has paid consecutive quarterly divs since 1916 & has increased the rate for 25 years in a row, said it remains fully committed to the payout. IBM raised the quarterly div by 5¢ last year & by 7¢ in 2018. The stock went up 37¢.
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
Harlet-Davidson (HOG) cut its div 95% & has begun developing a new strategic plan after the COVID-19 pandemic choked Q1 sales. Profit at the manufacturer fell 46% from a year ago (45¢ per diluted share) as revenue from motorcycle sales slipped 8% to $1.09B. The faorecaast called for EPS of 41¢ on revenue of $1.04B. Global sales were "significantly impacted by COVID-19" as US sales fell 15.5% year-over-year to 24K motorcycles. Worldwide sales dropped 18% to 41K. “COVID-19 has dramatically changed our business environment, and it is critical we respond with agility to this new reality,” Jochen Zeitz, acting pres & CEO of HOG, said. HOG reduced its quarterly payout to 2¢ a share from 38¢ & has suspended share buybacks, along with putting a freeze on hiring & merit pay increases. The company had $2.5B of liquidity at the end of the quarter, including $1.5B cash. “The crisis has provided an opportunity to reevaluate every aspect of our business and strategic plan,” Zeitz added. “We have determined that we need to make significant changes to the company; to our priorities, to our operating model and to our strategy to drive more consistent performance as we emerge from this crisis.” Going forward, the company will execute a number of actions, in what it has dubbed the Rewire, which will result in a new 5-year strategic plan that will incorporate key products & initiatives from its More Roads plan. The stock rose 2.91.
If you would like to learn more about HOG, click on this link:
club.ino.com/trend/analysis/stock/HOG?a_aid=CD3289&a_bid=6ae5b6f7
3M (MMM), a Dow stock & Dividend Aristocrat, the maker of coveted N95 face masks sales grew in its medical business while a deepening industrial downturn is weighing on its business overall. Adjusted sales in the Americas region fell 20% in Apr as factories suspended production, dentists cut back on operations & office managers bought fewer supplies for workforces at home. The company withdrew its guidance for the year. While the pandemic has sharply increased demand for some products, most notably its face masks, the company said demand has fallen for other goods in its vast product line, like industrial glues, as factory closures ripple thru the industrial economy. MMM is cutting its capital investments this year to about $1.3B, down from $1.8B planned previously. MMM also is furloughing some staff & temporarily shutting down some nonmask production lines due to weakened demand. About 25% of the company's factories & warehouses were closed as of earlier this month. The company expects Q2 to be the weakest for the global economy. MMM has ramped up production of N95 masks (they block 95% of very small particles including those containing the virus). The company has doubled global production to around 100M a month & plans to double production again by early next year. MMM had $100M in extra face-mask sales in Q1. Revenue grew 2.7% to $8.08B in Q1 & EPS rose to $2.22, up from $891M, or $1.51 a year earlier. Profit last year was negatively hit by legal charges related to chemicals-product lawsuits. The company posted adjusted EPS of $2.16, above the $2.03 forecast. The stock went up 4.17.
If you would like to learn more about HOG, click on this link:
club.ino.com/trend/analysis/stock/HOG?a_aid=CD3289&a_bid=6ae5b6f7
Oil alternated between gains and losses in a volatile trading session that at one point saw US crude drop more than 20%. Traders continue to eye dwindling storage capacity worldwide, although some of the losses were offset by optimism around reopening of economies. Weat Texas Intermediate (WTI) futures for Jun fell 44¢ (3.4%) to settle at $12.34 per barrel, while intl benchmark Brent crude gained 47¢ (2.4%) to settle at $20.46. Earlier WTI had been down more than 20%, touching a session low of $10.07, while also trading as high as $13.69. On Mon, WTI fell 26% ($4.16) to settle at $12.78 per barrel. Brent crude fell 6.8% to settle at $19.99. Each contract is coming off its 8h week of losses in 9 weeks. As demand drops more and more producers have announced production cuts. But some believe it won’t be fast enough to combat the unprecedented fall-off in demand from the pandemic. Earlier in Apr, OPEC & its oil-producing allies agreed to a record production cut that will take 9.7M barrels per day off the market beginning Fri, while Exxon (XOM) & Chevron (CVX), both Dow stocks & Dividend Aristocrats, are among the US-based companies that have scaled back operations. WTI & Brent are both on pace for their 4th straight month of losses for the first time since 2017.
Oil drops 3% in volatile session as storage capacity fears and weak demand weigh
Pfizer (PFE), a Dow stock, Q1 earnings beat estimates & reaffirmed its full-year revenue guidance as the drugmaker works to develop a vaccine to prevent coronavirus. The drugmaker reported adjusted EPS of 80¢, 7¢ higher than the estimate. Total sales dropped 8% from a year ago to $12B, but higher than the $11.8B expected. On an unadjusted basis, the company's profit for Q1 dropped 12% to $3.4B from $3.9B a year ago. PFE, working alongside German firm BioNTech, said it is taking steps to accelerate coronavirus vaccine development & scale up manufacturing as it looks to begin human trials by the end of this month. The company's experimental vaccine contains genetic material called messenger RNA, or mRNA. The mRNA instructs the body's own cellular mechanisms for making proteins to make those that mimic the virus proteins, thereby producing an immune response. It estimates it can potentially produce “millions” of coronavirus vaccine doses by the end of this year & “hundreds of millions of doses” in 2021 if the vaccine is successful. “We are fully committed to confronting the public health challenge posed by the COVID-19 pandemic by collaborating with industry partners and academic institutions to develop potential approaches to prevent and treat COVID-19,” Pfizer CEO Albert Bourla said. The stock fell 42¢.
If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
Pfizer’s quarterly sales fall 8% as it races to develop coronavirus vaccine
Gold futures posted a 3rd straight session decline, but finished off the session's worst levels after data revealed that US consumer confidence suffered a record drop in Apr. The confidence Americans have in the economy experienced the biggest plunge in Apr in modern times as the coronavirus ravaged Main Street & Wall Street, according to the Conference Board. The consumer confidence index sank this month to 86.9 points from a revised 118.8 in Mar, a bit worse than was expected. That's the lowest level since 2014. Gold for Jun lost only $1 to settle at $1722 following a low at $1704..
Gold futures fall for third straight session
The Dow began the day with a 300 point rise & then dropped to a little above breakeven. Extra selling into the close dragged the Dow into the red. Earnings reports were taken fairly well today. With generally gloomy earnings reports & a very unpleasant GDP report tomorrow, stocks can be expected to be under pressure.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Pres Tru,p[ said he expects US economic growth to rebound from the coronavirus pandemic in Q4 as the nation faces its first downturn in nearly 6 years. “I think the fourth quarter is going to be really strong, and I think next year is going to be a tremendous year,” Trump said. “That’s what’s building. Third quarter is a transition quarter. Second quarter is what it is.” Trump's comments come one day before the release of Q1 GDP, which is expected to reveal the economy contracted at a 4% annualized rate in Q1, well before a broad swath of the country shut down to mitigate the spread of the virus. It would be the first quarterly contraction since 2014 & the worst since the last recession more than a decade ago. Larry Kudlow, Trump's chief economic adviser, said the administration is aware that "we're in a deep contraction with rising unemployment." More than 26M Americans (16% of the nation) have filed unemployment claims since the virus outbreak forced a broad swath of the US economy to shut down. But Kudlow said the 4 stimulus packages, including the massive $2T bill signed into law at the end of Mar, passed by the federal gov, will help to cushion the economic blow from the mandated stay-at-home orders throughout the nation. "We'll take that hit," he said. "It's very bad, very difficult. We're doing what we can." Still, Kudlow said there's a lot of "pent-up" demand. "I'm optimistic about the future," he added. The Trump administration is not alone in its expectations for a solid economic rebound from the crisis. Earlier in the month, Federal Reserve Chairman Jerome Powell said he thinks there can be a "robust" economic rebound from the pandemic, even as increasingly strict containment measures force American life to come to a grinding halt. “At the Fed, we are doing all we can to help shepherd the economy through this difficult time,” Powell said. “When the spread of the virus is under control, businesses will reopen, and people will come back to work. There is every reason to believe that the economic rebound, when it comes, can be robust.”
Trump predicts when US economy will bounce back from coronavirus crisis
As myriad companies slash or suspend their dividends amid the economic chaos sparked by the International Business Machines (IBM), a Dow stock, bumped the quarterly payout up by a penny to $1.63. The new rate, equal to $6.52 a year, represents an annual yield of about 5.2%. IBM, which has paid consecutive quarterly divs since 1916 & has increased the rate for 25 years in a row, said it remains fully committed to the payout. IBM raised the quarterly div by 5¢ last year & by 7¢ in 2018. The stock went up 37¢.
If you would like to learn more about IBM, click on this link:
club.ino.com/trend/analysis/stock/IBM?a_aid=CD3289&a_bid=6ae5b6f7
IBM bucks coronavirus trend by boosting dividend
Harlet-Davidson (HOG) cut its div 95% & has begun developing a new strategic plan after the COVID-19 pandemic choked Q1 sales. Profit at the manufacturer fell 46% from a year ago (45¢ per diluted share) as revenue from motorcycle sales slipped 8% to $1.09B. The faorecaast called for EPS of 41¢ on revenue of $1.04B. Global sales were "significantly impacted by COVID-19" as US sales fell 15.5% year-over-year to 24K motorcycles. Worldwide sales dropped 18% to 41K. “COVID-19 has dramatically changed our business environment, and it is critical we respond with agility to this new reality,” Jochen Zeitz, acting pres & CEO of HOG, said. HOG reduced its quarterly payout to 2¢ a share from 38¢ & has suspended share buybacks, along with putting a freeze on hiring & merit pay increases. The company had $2.5B of liquidity at the end of the quarter, including $1.5B cash. “The crisis has provided an opportunity to reevaluate every aspect of our business and strategic plan,” Zeitz added. “We have determined that we need to make significant changes to the company; to our priorities, to our operating model and to our strategy to drive more consistent performance as we emerge from this crisis.” Going forward, the company will execute a number of actions, in what it has dubbed the Rewire, which will result in a new 5-year strategic plan that will incorporate key products & initiatives from its More Roads plan. The stock rose 2.91.
If you would like to learn more about HOG, click on this link:
club.ino.com/trend/analysis/stock/HOG?a_aid=CD3289&a_bid=6ae5b6f7
Harley-Davidson overhauling strategy as coronavirus drains income
3M (MMM), a Dow stock & Dividend Aristocrat, the maker of coveted N95 face masks sales grew in its medical business while a deepening industrial downturn is weighing on its business overall. Adjusted sales in the Americas region fell 20% in Apr as factories suspended production, dentists cut back on operations & office managers bought fewer supplies for workforces at home. The company withdrew its guidance for the year. While the pandemic has sharply increased demand for some products, most notably its face masks, the company said demand has fallen for other goods in its vast product line, like industrial glues, as factory closures ripple thru the industrial economy. MMM is cutting its capital investments this year to about $1.3B, down from $1.8B planned previously. MMM also is furloughing some staff & temporarily shutting down some nonmask production lines due to weakened demand. About 25% of the company's factories & warehouses were closed as of earlier this month. The company expects Q2 to be the weakest for the global economy. MMM has ramped up production of N95 masks (they block 95% of very small particles including those containing the virus). The company has doubled global production to around 100M a month & plans to double production again by early next year. MMM had $100M in extra face-mask sales in Q1. Revenue grew 2.7% to $8.08B in Q1 & EPS rose to $2.22, up from $891M, or $1.51 a year earlier. Profit last year was negatively hit by legal charges related to chemicals-product lawsuits. The company posted adjusted EPS of $2.16, above the $2.03 forecast. The stock went up 4.17.
If you would like to learn more about HOG, click on this link:
club.ino.com/trend/analysis/stock/HOG?a_aid=CD3289&a_bid=6ae5b6f7
3M to cut costs as business cools beyond masks
Oil alternated between gains and losses in a volatile trading session that at one point saw US crude drop more than 20%. Traders continue to eye dwindling storage capacity worldwide, although some of the losses were offset by optimism around reopening of economies. Weat Texas Intermediate (WTI) futures for Jun fell 44¢ (3.4%) to settle at $12.34 per barrel, while intl benchmark Brent crude gained 47¢ (2.4%) to settle at $20.46. Earlier WTI had been down more than 20%, touching a session low of $10.07, while also trading as high as $13.69. On Mon, WTI fell 26% ($4.16) to settle at $12.78 per barrel. Brent crude fell 6.8% to settle at $19.99. Each contract is coming off its 8h week of losses in 9 weeks. As demand drops more and more producers have announced production cuts. But some believe it won’t be fast enough to combat the unprecedented fall-off in demand from the pandemic. Earlier in Apr, OPEC & its oil-producing allies agreed to a record production cut that will take 9.7M barrels per day off the market beginning Fri, while Exxon (XOM) & Chevron (CVX), both Dow stocks & Dividend Aristocrats, are among the US-based companies that have scaled back operations. WTI & Brent are both on pace for their 4th straight month of losses for the first time since 2017.
Oil drops 3% in volatile session as storage capacity fears and weak demand weigh
Pfizer (PFE), a Dow stock, Q1 earnings beat estimates & reaffirmed its full-year revenue guidance as the drugmaker works to develop a vaccine to prevent coronavirus. The drugmaker reported adjusted EPS of 80¢, 7¢ higher than the estimate. Total sales dropped 8% from a year ago to $12B, but higher than the $11.8B expected. On an unadjusted basis, the company's profit for Q1 dropped 12% to $3.4B from $3.9B a year ago. PFE, working alongside German firm BioNTech, said it is taking steps to accelerate coronavirus vaccine development & scale up manufacturing as it looks to begin human trials by the end of this month. The company's experimental vaccine contains genetic material called messenger RNA, or mRNA. The mRNA instructs the body's own cellular mechanisms for making proteins to make those that mimic the virus proteins, thereby producing an immune response. It estimates it can potentially produce “millions” of coronavirus vaccine doses by the end of this year & “hundreds of millions of doses” in 2021 if the vaccine is successful. “We are fully committed to confronting the public health challenge posed by the COVID-19 pandemic by collaborating with industry partners and academic institutions to develop potential approaches to prevent and treat COVID-19,” Pfizer CEO Albert Bourla said. The stock fell 42¢.
If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7
Pfizer’s quarterly sales fall 8% as it races to develop coronavirus vaccine
Gold futures posted a 3rd straight session decline, but finished off the session's worst levels after data revealed that US consumer confidence suffered a record drop in Apr. The confidence Americans have in the economy experienced the biggest plunge in Apr in modern times as the coronavirus ravaged Main Street & Wall Street, according to the Conference Board. The consumer confidence index sank this month to 86.9 points from a revised 118.8 in Mar, a bit worse than was expected. That's the lowest level since 2014. Gold for Jun lost only $1 to settle at $1722 following a low at $1704..
Gold futures fall for third straight session
The Dow began the day with a 300 point rise & then dropped to a little above breakeven. Extra selling into the close dragged the Dow into the red. Earnings reports were taken fairly well today. With generally gloomy earnings reports & a very unpleasant GDP report tomorrow, stocks can be expected to be under pressure.
Dow Jones Industrials
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